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Regtech Accelerate Conference Demonstrated a Desire to Collaborate

Tuesday 12 June 2018

The regulators and industry agree that the Regtech Association recent conference demonstrated a key interest to collaborate.

At the Australian Securities and Investments Commission (ASIC) Regtech Liaison meeting which was held in June of this year, Mark Adamson innovation Hub Coordinator at the ASIC said that the #AccelerateRegtech conference was a clear indicator that there was tremendous interest in RegTech and it had wide range of stakeholders.

“A lot of attention on machine learning as an enabler, including the territory of machine readable regulatory requirements—whether that is reporting or compliance. There was certainly plenty of examples of people talking about collaboration, including firms.”

He moved to say that the open data and regtech’s role in financial crime were also major discussion points.

Deborah Young and Lisa Schultz from the Regtech association also gave their run down of the importance of the conference from the RegTech perspective and what can expected in the future.

Young said that the conference was a very significant event because it was one that was backed by the industry itself.

Another major item that was addressed at the conference was the New Payments Platform (NPP).

Schultz said that what came out of the conference was the need for Regtech to get themselves into the value chain so that they are consumable.

“And then the collaboration theme around not just how RegTech get better and FIS get better at selling but having examples of CBA, ING and FCA  collaboration.”
Earlier this year in the UK, CBA and ING had completed RegTech pilot that would help simplify the processing of information and the implementation of regulation.

CBA said that they used Markets in Financial Instruments Directive II (MiFID II) as a test case.

They presented a case study on their panel at the conference.

She believes that this successful pilot could have impact on the financial industry in Australia.

The Regtech Association is also looking to run a RegTech boot camp on the 13st July to help financial institutions to get ‘Regtech ready’. This will looking at how RegTech can help organisations can meet their regulatory obligations under the anti-Money Laundering counterterrorism financing (AML/CTF) regulation.

Differences Regtech In the international conversation
Julian Fenwick, a member of Regtech Association, spoke a little about the RegTech conference that he attended in the New York call Comply 2018, which largely similar to the #AccelerateRegtech conference here in Australia with the exception of less engagement with regulators.

“There was no obvious connection with the SEC [Securities Exchange Commission] or anything like that.”

He said that there was also a lot discussion about the difficulty of regulated entities in dealing with multiple jurisdictions and the continuous difficulty with their own changes in domestic regulation.

“From the regulatory point of view there is a lot fear with this change and a lot of that had to do, that the current threat the consumer financial protection bureau, which is being challenges by the current administration. They have actually had legal challenge to strip them of their independence,” Fenwick explained.

There has been a dialling back in the investigation in to Equifax and a director has requested that no further funding be given to that particular regulatory body.
He said that one of the things that he witnessed at the American conference that he had not seen I Australia was the.

“With regards to Regtech there was key themes around innovative companies partnering organisations like Accenture and Protiviti, which was quite interesting because we have not seen quite a lot of that here, yet it speaks to the same issues of how do get a small start-up company to be credible when dealing with major originations and they were taking group RegTech companies under their own brand and helping them get established in those markets.”

He said that the overarching topic was the General Data Protection Regulation (GDPR), it did not have the same presence as in Australia, but there is knowledge that it will affect everyone else.   

Lisa Schultz said that there were other examples of collaboration in the international space.

“There has been a lot interest in the UK and Singapore in the idea of design box, and I think that’s the idea that there might be globally new was for regulators to think about making it easier to test new approaches and de-risking that for the parties involved,” She explained